PTC Dec 06 past exam

alicemaylara
alicemaylara Registered Posts: 259 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Hiya, I'm very confused!

Section 2 question 1 asks to calculate rental income. When i looked at the answer they have charged wear and tear on the unfurnished property but i thought you didnt charge wear and tear on unfurnished lettings :huh: Am i wrong/right?!?!

I'm struggling with the shares as well but I think i'll leave that for another day!

Comments

  • Bookworm55
    Bookworm55 Registered Posts: 479 Dedicated contributor 🦉
    You're right, you don't charge wear and tear on unfurnished properties. However, I think you've misread the answer. There's only a deduction for wear and tear on the second (furnished) property.

    It's not very clear on the answers, but that £1025 on the Wear and Tear row is the sum of the expenses from that column (Insurance, Accounting and repainting). The second property has £600 wear and tear included on the Wear and Tear row, and the £2100 is the sum of the expenses (Insurance, Decoration, and wear and tear).
  • alicemaylara
    alicemaylara Registered Posts: 259 Dedicated contributor 🦉
    What a ding dong bat I am! Thank you. I think i was just getting a bit stressed out at that point. Thanks for taking the time to explain it to me :001_smile:

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